Vietnam Added to FTSE Russell Emerging Market Indexes; Up to $6 Billion Inflows Expected

FTSE Russell added Vietnamese stocks to its emerging market indexes on September 21, 2026, a milestone after years of reforms to attract foreign capital. The index provider estimates the inclusion could redirect up to $6 billion into Vietnam, which has been on the watchlist since 2018 alongside China and India. Vietnam's benchmark index opened up 0.54% on September 21, led by banks, before retreating. Foreign investors bought a net 2.7 trillion dong ($104 million) worth of shares last week, though they remain net sellers by about 91 trillion dong. The transition will occur in four stages through 2027: 10% in September 2026, 20% in March 2027, and 35% each in June and September 2027. Vanguard plans to boost investment in Vietnam to about $2.5 billion over the next few years. Concerns remain over foreign ownership limits and free-float constraints. A central counterparty clearing mechanism, expected in 2027, could support a future MSCI upgrade.